Sharekhan has given Buy recommendation for Titan Company with a target price of Rs. 2900 in its research report issued on Apr 07, 2022
Sharekhan’s research report on Titan Company
Titan’s Q4FY2022 sales performance will be affected by multiple one-off factors such as 1) short-lived third wave impacting footfalls in January; 2) Higher gold prices leading to delayed purchases in fag end of quarter; and 3) bleak consumer sentiments in an uncertain environment. One-off factors along with high base of Q4FY2021 led to a 4% decline in jewellery sales in Q4FY2022. Watches and eyewear revenue grew by 12% and 5% y-o-y, respectively. We expect revenue to remain flat at the consolidated level (revenue declined by 3% on standalone level) in Q4. EBITDA margin to improve y-o-y due to better mix and expected to stand at 13-13.5% (200-250 bps expansion)., leading to PAT growth of 20%+ in Q4. Titan is optimistic about strong recovery in growth in Q1FY2023, supported by factors such as postponement of the wedding season and improved footfalls.